OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Debt Capital Raises
Debt Transaction Chart
Viridian publishes weekly data and analysis on debt capital raises in the Cannabis/CBD/Psychedelic industries. This data includes information about the company issuing debt (public/private, state/country location), deal size, deal structure, pricing, warrants, and credit data.
Week ended 03/28/2025
Week ended 03/28/2025
Debt Commentary
Week ended 03/28/2025
- Debt accounted for 72% of trailing 8-week capital raises. The ratio may go down if companies are able to utilize favorable regulatory-induced stock price increases to complete equity issues. However, equity pricing has remained stubbornly low while the cannabis debt capital markets have reopened.
- The Week’s Debt Transactions
- On March 28, 2025, Entourage Health Corp (ENTG: TSX)(ETRGF: OTCQX), a disastrous Canadian cannabis company that we have referred to as one of the worst credits we have ever seen, advanced another $2.1M on its credit facility with LiUna Pension Fund of Central and Eastern Canada.
- The advance comes just after Entourage shareholders approved the company’s plan to go private.
- LiUna has advanced more than $100M into a company where we expect recoveries of perhaps $0.30 on the dollar. The pension company also owned more than 20% of Entourage equity, which undoubtedly played into its desire to throw good money after bad.
- Our only regret is that we never got around to applying for a massive loan from LIUna.
- On March 25, 2025, Verano Holdings (VRNO: CSE)(VRNOF: OTCQX), the sixth largest U.S. MSO by market cap, closed a $12M “Cross Collateralized” Senior Mortgage with Rainbow Realty.
- The loan is secured by a 7.44-acre property with three buildings totaling 51,981 sq feet in Coolidge, Arizona, and a 41,625 square-foot building on 4.86 acres in North Las Vegas, Nevada.
- Details of the loan, including interest rate, maturity, and any call features, were not disclosed.
- The $12M principal of the loan amounts to about $128 per square foot on the collateral buildings. This seems to imply a relatively low loan to value the buildings, which hopefully translates into a relatively attractive rate for the company.
- Verano is ranked #7/31 by the Viridian Credit Model. The company benefits from relatively low leverage, even accounting for tax liabilities and leases. See our enhanced metrics graph above.
- Verano has avoided sales leaseback transactions, opting for greater flexibility from mortgage and secured debt. The company has other unencumbered facilities that it will probably look to obtain mortgage financing against to improve its overall debt costs and maturity profile.
- Verano does have a significant debt maturity of close to $300M coming up in October 2026, which may be one of the reasons its stock has underperformed the peer group YTD. We do not believe Verano will have any significant issues in refinancing its debt.
- On March 28, 2025, Entourage Health Corp (ENTG: TSX)(ETRGF: OTCQX), a disastrous Canadian cannabis company that we have referred to as one of the worst credits we have ever seen, advanced another $2.1M on its credit facility with LiUna Pension Fund of Central and Eastern Canada.
Week ended 03/28/2025
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Weekly Credit Tracker
Each week, Viridian highlights a specific industry sector and provides a deep dive into credit metrics and comparable company credit rankings for public companies operating in that sector. Credit ratings are not currently available for public cannabis companies leaving companies, lenders, and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
- Week ended 03/28/2025
This week’s credit tracker focuses on the 7 Canadian Cultivation & Retail sector companies with market caps between $50M and $500M in the Viridian Value Tracker database in order to make the case that Auxly had a good reason to sell assets, even at prices significantly below its cost: The firm is over levered and needs to sell assets to reduce debt. The Viridian Credit tracker ranking system shows Auxly near the bottom of the peer group in terms of credit quality.
- Week ended 03/28/2025
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Additional content is available to Premium and Enterprise users. Please purchase a higher tier membership to see more.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
Viridian publishes weekly insights on debt capital raises in the Cannabis/CBD/Psychedelic industries. These insights typically highlight the most interesting/meaningful debt transactions of that week, and commentary on market conditions, debt deal structures, and lenders.